What Taxpayers Should Expect if Their 2025 Tax Return Does Not Include Direct Deposit Information

As the IRS continues to modernize how tax refunds are issued, direct deposit is no longer just a convenience. It is quickly becoming the standard. Taxpayers who file a 2025 tax return without direct deposit information should be prepared for possible delays in receiving their refund.

Why the IRS Is Moving Away From Paper Checks

In late March 2025, the President signed Executive Order 14247, which directs the federal government to phase out paper checks for payments going out and coming in. As part of this effort, the IRS announced in News Release IR-2025-94 that paper tax refund checks for individual taxpayers will begin to be phased out starting September 30, 2025, with limited exceptions.

The IRS has since published updated guidance on its website under a Q&A titled Modernizing Payments to and From America’s Bank Account. These questions and answers were most recently updated on January 27, 2026, and they provide important insight into how refunds will be handled going forward.

Will Missing Direct Deposit Information Delay a Tax Refund?

According to the IRS, refunds will not be delayed in most cases. However, that answer depends heavily on whether direct deposit information is included on the tax return.

The IRS explains that electronic payments are faster and more secure than paper checks and are intended to reduce delays. That said, when a taxpayer does not provide direct deposit information, the process becomes more manual and can slow things down.

What Happens If Direct Deposit Is Not Included on a Tax Return?

Direct deposit information is still considered voluntary. A tax return filed without banking information will be accepted and processed. However, the IRS has outlined several additional steps that may occur if direct deposit details are missing.

If a taxpayer files electronically without direct deposit information and is due a refund, they may receive an alert notifying them that banking information is missing and explaining the next steps.

For all taxpayers missing direct deposit information, the IRS will send a letter to the taxpayer’s last known address requesting updated banking details. If the original direct deposit was rejected by a financial institution, the same process applies.

The IRS will then issue a CP53E notice by mail. This notice requires the taxpayer to respond within 30 days by either providing direct deposit information or explaining why they cannot do so. During this time, the “Where’s My Refund?” tool on IRS.gov will also display messaging related to the missing banking information.

Taxpayers can securely provide direct deposit information through their IRS Individual Online Account. For security reasons, IRS employees cannot accept banking information over the phone or in person.

When Will the Refund Be Issued?

Once the taxpayer provides valid direct deposit information or qualifies for an exception, the IRS will release the refund immediately, either by direct deposit or paper check.

If the taxpayer does not respond to the CP53E notice and there are no other issues with the return, the IRS will issue the refund as a paper check after approximately six weeks.

Our Recommendation at Kamish & Associates

To avoid unnecessary delays and extra correspondence with the IRS, we strongly recommend including direct deposit information when filing your 2025 tax return. With paper checks being phased out and electronic payments becoming the default, direct deposit is the fastest and most reliable way to receive your tax refund.

If you have questions about direct deposit, IRS notices, or how these changes may affect your tax situation, the team at Kamish & Associates is here to help.